Delays hit final approval of EMIR rules

European policymakers have secured a one-month extension to the final sign off covering detailed rules that underpin new OTC derivatives legislation.

The Council of the European Union and European Parliament now have until 19 February to scrutinise rules developed by the European Securities and Markets Authority (ESMA) and European Banking Authority (EBA) that support the European market infrastructure regulation (EMIR).

"The adoption of the delegated regulations shortly before Parliament's winter recess made it impossible for Parliament to exercise its scrutiny rights within that period," read a statement from the European Parliament. "Therefore, the chair of Parliament's Economic and Monetary Affairs Committee has requested the extension of the scrutiny period by one month, as foreseen in the relevant regulations."

The rules set out by the EBA and ESMA - known as technical standards - were submitted in September 2012 and adopted by the European Commission on 19 December.

They form a crucial element of the new swaps rules, which require OTC derivatives to be cleared through central counterparties and the trades reported to newly-created data repositories.

The technical standards include determining which contracts are eligible for central clearing, collateral eligibility and CCP authorisation and portfolio margining.

If approved by the Council and Parliament, they will enter into force 20 days after publication in the Official Journal of the European Union.